Post #1734410
2026-04-25 09:57 UTC
People familiar with inference costs think that the API prices are either already profitable enough. The major cost sinks are the subsidized subscriptions and RnD costs.
The subsidized subscriptions are similar to how Uber burned cash and jacked up prices after killing competition. The RnD costs remain difficult to offset unless these companies have sufficient scale
Replies (1)
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@NotMyOldRedditName@lemmy.world 2026-04-27 00:48
The RnD costs remain difficult to offset unless these companies have sufficient scale Ya thats going to be deciding factor. Can you get enough users to offset it and stay alive before you run out of cash. If you slow down, and your competitors still have enough cash they’ll make a better product and you’ll start losing users.